XGIMI(SH:688696) Zhong Guo Neng Yuan Wang·2025-10-27 06:38Core Viewpoints - XGIMI is a leading player in the smart micro-projection market, with its business covering smart micro-projectors, office projectors, and automotive projectors [2] - The smart micro-projection market is a cyclical consumer product with strong optionality. The company's performance surged during China's consumption upgrade but faced significant challenges from low-cost single LCD projectors since 2022, leading to a substantial decline in performance [2] - The company is deepening its projection technology advantages and plans to establish an automotive division in 2024, with automotive projection expected to be a significant new business [2] Financial Performance - The company is expected to show signs of improvement, with a projected net profit of 160 million yuan in Q4 2024, a year-on-year increase of 367%. For the first half of 2025, the net profit is expected to reach 90 million yuan, a year-on-year increase of 2062% [2] - The gross margin is projected to be 33.3%, an increase of 4.2 percentage points year-on-year [2] Market Trends - The demand for home display is diversifying, with an increasing share of projection products. XGIMI has maintained its position as the top supplier of projection equipment in China for seven consecutive years since 2018 [3] - The projection industry in China has faced pressure, with a projected market size of 14.2 billion yuan and sales of 5.23 million units in 2024, reflecting a year-on-year decline of 6.6% in market size but an 18.2% increase in sales volume [3] - The market for single LCD projectors has negatively impacted DLP projectors, leading to a compound annual growth rate (CAGR) of -13.8% for the projection industry from 2021 to 2024 [3] Global Market Position - Chinese brands, including XGIMI, have a significant advantage in the global smart micro-projection market, which is primarily dominated by foreign brands in commercial and educational sectors [4] - The global projection market is projected to reach 53.2 billion yuan in 2024, with consumer, engineering, and cockpit projections accounting for 60.2%, 38.7%, and 1.1% respectively [4] - XGIMI's overseas sales are expected to reach 1.09 billion yuan in 2024, a year-on-year increase of 18.9%, with the main business revenue proportion reaching 33% [5] Product Development - The company has established an automotive division in 2024, focusing on smart cockpit solutions and optical components for automotive headlights, with several products already delivered to various car models [5] - XGIMI has expanded its product offerings to include Google-certified products for the European and American markets, successfully entering high-end offline channels such as Best Buy and Sam's Club [5]